Fill-Rate Optimization in a One-Warehouse <i>N</i>-Identical Retailer Distribution System

Schwarz, Leroy B.; Deuermeyer, Bryan L.; Badinelli, Ralph D.

doi:10.1287/mnsc.31.4.488

Cited by 82 publications

(35 citation statements)

References 10 publications

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“…In real-life vendor-buyer integrated inventory systems, the periodic/multiple delivery policy is commonly adopted for distribution of the end products (Schwarz et al, 1985;Sarker & Parija, 1994;Thomas & Hackman, 2003;Archetti et al, 2013;Balaji et al, 2015;Kundu & Chakrabarti, 2015). When multiproduct sharing a common intermediate part, production managers would often evaluate various potential production schemes seeking to cut down overall manufacturing costs and/or production cycle time, e.g., assessment of a two-stage fabrication scheme (wherein stage one makes all common parts for multiple end items, and stage two fabricates the customized multiproduct), versus conventional singlestage production scheme.…”

Section: Introductionmentioning

confidence: 99%

Alternative fabrication scheme to study effects of rework of nonconforming products and delayed differentiation on a multiproduct supply-chain system

Chiu¹,

Lin²,

Wu³

et al. 2018

10.5267/j.ijiec

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This study uses an alternative fabrication scheme to study the effect of rework of nonconforming items and delayed differentiation on a multiproduct supply-chain system. Traditional economic production quantity model focuses on a single-product inventory system where all products made are assumed to be perfect quality and finished products are issued continuously. To increase machine utilization, lower quality costs in production, and reflect the real-world vendor-buyer integrated systems Chiu et al. (2016a) [Chiu, Y-S.P., Kuo, J-S., Chiu, S. W., Hsieh, Y-T. (2016a). Effect of delayed differentiation on a multiproduct vendor-buyer integrated inventory system with rework. Advances in Production Engineering & Management, 11(4), 333-344.] employed a single-machine two-stage production scheme to study the effects of rework and delayed differentiation on a multi-product supply-chain system. With the intention of further reducing fabrication cycle time, this study considers an alternative two-machine two-stage fabrication scheme to re-explore the problem in Chiu et al. (2016a). Machine one solely produces all common parts for multiple end products. Then, machine two fabricates the customized multiproduct using a common cycle time strategy. Through the use of mathematical modeling and analyses, the optimal production cycle length and distribution policy are derived. Numerical examples are provided to demonstrate practical usage of the research results, and show its significant benefit in reducing fabrication cycle time compared to that obtained from prior studies that used different schemes.

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Section: Introductionmentioning

confidence: 99%

Alternative fabrication scheme to study effects of rework of nonconforming products and delayed differentiation on a multiproduct supply-chain system

Chiu¹,

Lin²,

Wu³

et al. 2018

10.5267/j.ijiec

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show abstract

“…A numerical example was provided to verify this solution process. Schwarz et al (1985) determined the fill-rate of a one-warehouse N-identical retailer distribution system. An approximation model was adopted from a prior study to maximize system fill-rate subject to a constraint on system safety stock.…”

Section: Introductionmentioning

confidence: 99%

Optimization of a multi-product EPQ model with scrap and an improved multi-delivery policy

Wu¹,

Chiu²,

Sung³

2014

J Engin Res

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This paper considers optimization of a multi-product economic production quantity (EPQ) model with scrap items and an improved multi-delivery policy. We extend the work of Chiu et al. (2013a) by incorporating an improved n + 1 multi-delivery plan into their model with an aim at reducing vendor's inventory holding cost. Under such a specific shipment policy, for each product an extra delivery of finished goods is made during production uptime to satisfy the product demand for the period of vendor's uptime. Then, when rework process comes to an end (i.e., the rest of the production lot is quality assured) n fixed quantity installments of finished goods are delivered to buyers at a fixed time interval. The objectives of this study are to determine the optimal rotation production cycle time that minimizes the long-run average system cost per unit time and reveals the effects of random scrap rate and the improved delivery policy on the optimal production cycle time. With the help of a mathematical model a closedform optimal common cycle time is derived. Through a numerical example, practical usages of obtained results and significant savings in vendor's stock holding cost are demonstrated.

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“…An example was provided to illustrate his proposed method. Many studies have since been carried out to address various aspects of supply chain optimization [1, [24][25][26][27][28][29][30][31][32][33][34][35]. Examples of these studies are surveyed as follows.…”

Section: Introductionmentioning

confidence: 99%

On Improving Replenishment Lot Size of an Integrated Manufacturing System with Discontinuous Issuing Policy and Imperfect Rework

Lee¹,

Chiu²,

Chang³

2011

AJIBM

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Fill-Rate Optimization in a One-Warehouse N-Identical Retailer Distribution System

Cited by 82 publications

References 10 publications

Alternative fabrication scheme to study effects of rework of nonconforming products and delayed differentiation on a multiproduct supply-chain system

Alternative fabrication scheme to study effects of rework of nonconforming products and delayed differentiation on a multiproduct supply-chain system

Optimization of a multi-product EPQ model with scrap and an improved multi-delivery policy

On Improving Replenishment Lot Size of an Integrated Manufacturing System with Discontinuous Issuing Policy and Imperfect Rework

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